$2 Billion Bitcoin Withdrawn From Exchanges

7,326.08 of it, worth nearly $300 million, was withdrawn in just the past 24 hours out of a total 1.9 million bitcoin held on these exchanges, worth $77.5 billion or circa 10% of the total supply.

Bitcoin held on exchanges, July 2021

Coinbase and Binance have seen the biggest withdrawals at a combined 45,000 bitcoin in the past week with the two being some of the biggest custodians as well.

This reversal is the first since April when the amount held on exchanges rose from 1.82 million bitcoin to more than 2.03 million this Monday.

A very sharp fall in supply has been experienced since, with Santiment data suggesting supply in exchanges is near all time lows as pictured in the featured image.

For Bybt, April 20th had about one million coins less, with these data diverging due to exchanges constantly changing custodian addresses and because the blockchain is pseudo-anonymous. Thus there has to be estimates.

They all agree however on the trajectory, which is that supply on exchanges is falling, and they also seem to agree with the speed of it as both Santiment and Bybt shows a sharp drop.

That suggests more buyers than sellers have entered the market and have withdrawn to their hardware wallet or self-custodian wallet outside of exchanges, presumably to hold more long term.

That’s a change from spring and much of this summer when more coins were being sent to exchanges, presumably to sell.

Something that may suggest sentiment is turning more bullish, but it isn’t clear whether this is a leading or a lagging indicator following a rise in bitcoin’s price to $40,000, coinciding with the sharp fall of supply on the exchanges.